“The grill is the summer equivalent of a fireplace, everyone gravitates to it.”
-Katie Lee
Here’s what you need to know this week:
· Stocks extend their winning streak
· A meaningful ceasefire with Iran *may* be back on the table
· Resources for recognizing and avoiding financial frauds
Eight Straight
Stocks closed last week in positive territory, marking eight consecutive weeks of gains for the S&P 500. This is the 20th time since 1950 that stocks have posted eight weeks of gains without a weekly decline:
This winning streak began at the end of March on news that the US and Iran had reached a ceasefire after weeks of exchanging fire. Stock prices have marched relentlessly upwards despite the end of the ceasefire, the closure of the Strait of Hormuz and the rapidly escalating price of oil. This bull market surge is due to a combination of investors still expecting a (relatively) quick resolution to the Iranian conflict and a gangbuster quarter for corporate earnings, particularly for companies exposed to semiconductors and artificial intelligence.
Ceasefire?
President Trump told reporters on Saturday that negotiators are close to reaching a 60-day ceasefire with Iran[1]. The deal would open the Strait of Hormuz to all trade with no tolls, clear all underwater mines from the Strait and open Iran’s ports to free trade. As of writing the deal has not been finalized yet, but Secretary of State Marco Rubio said on Monday that a deal is imminent[2].
A deal would be a welcome development on multiple fronts. The price of oil is still historically high and gas prices are inching towards the all-time high set in 2022:
These high gas prices have begun to impact the price of other goods as well. On Walmart’s Q1 earnings call last Thursday, Walmart CFO John Rainey told investors that the global retailer spent $175 million more than expected on fuel costs and indicated that Walmart will soon have to pass these expenses along to consumers[3]. We will also receive the Personal Consumption Expenditures (PCE) report for the month of April tomorrow morning; analysts expect the report to show annualized inflation jumping to 3.9% and the May number is expected to be worse. Gas prices will likely remain elevated for some time even if a deal is reached with Iran, and prices will only get worse the longer it takes.
Fraud Prevention
As technology has improved, financial scams have become more and more sophisticated. We here at Eternal Wealth Management work hard to stay ahead of the curve on the latest fraud tactics but it’s good for everyone to be more educated on the topic. This week I’d like to highlight two great resources for identifying and avoiding potential scams:
The first is a Medicare Fraud Prevention and Reporting seminar from the Oklahoma Insurance Department. The OID hosts a free seminar & webinar on the first Monday of every month covering different topics related to Medicare; you can learn more about the fraud webinar and access recordings of previous webinars by clicking the link below:
· OID Medicare Mondays Fraud Prevention
Second is a Fraud Prevention Conference at MetroTech from July 15th-17th. This conference will be held both on-site at MetroTech and online, click below to learn more:
· MetroTech Fraud Prevention Conference
Lastly, we will hosting a fraud prevention event of our own in the near future so stay tuned!
Upcoming Art Gallery
Quick reminder: our art gallery for clients and friends is quickly approaching on June 11th from 5:30-7:00 PM. The art gallery will be set up in our office building’s lobby and will feature four artists as well as complimentary food and wine. Each week we will feature one artist in the upcoming show; this week’s Featured Artist is Sheryl McClain. Sheryl is a fine art photographer whose work captures the beauty of both sweeping landscapes and authentic human connection. Make sure to put our art gallery on your calendar! | |
What Else
· A man opened fire near the White House and was killed by Secret Service officers
· SpaceX officially filed for its initial public offering (IPO) and will debut on the stock market on June 12th
· Tulsi Gabbard resigned as Director of National Intelligence, citing her husband’s recent cancer diagnosis and wanting to spend more time with family
· The OKC Thunder play Game 6 of the Western Conference Finals against the San Antonio Spurs tomorrow night at 7:30 on NBC
· The New York Knicks swept the Cleveland Cavaliers and punched their ticket to the NBA Finals for the first time since 1999
What We’re Reading
A total eclipse is heading for Iceland, Greenland, Portugal and Spain on August 12th this year. Cities along the path of totality are already planning festivals, science conventions and concerts to celebrate the event, and cruise ships are changing their routes to coincide with the eclipse. Click below to read the full slate of events and decide if you’d like to book an eclipse cruise yourself!
What’s Happening Downtown
The Scissortail Farmer’s Market is in full swing now that summer is approaching. The market runs every Saturday from 9:00 AM to 1:00 PM and features dozens of local farms and vendors selling produce, meats, dairy, baked goods and more. The market also features fresh meals prepared at multiple tents and trucks, drinks from local breweries and activities on the Scissortail Park lawn. Click below to learn more:
· Scissortail Park Farmer’s Market
To read more from our blog, click here
Written by: Kane Ogle, CFP®
Steve Beck, Kane Ogle, CFP®, Amber Eduvigen, CFP®, Cale Olbert, CFP®, Brett Valentine, CFP®, Brandon Ingerson, Bill Daniel, Sam Postich, Jenni Hess, Hannah Hartman
[1] Axios [2] CBS [3] Yahoo! Finance